Up to 10% Lighting Chip Price Increase LED Group Hi

Prices of LED lighting chips that only fall but not rise are rumored to be rising. Due to the weak recovery in mainland China, small and medium-sized players have withdrawn from the market. According to a survey by market research agency TrendForce, low-power LED lighting chips have risen by 3-5%. The size has increased by 10%, which is conducive to reducing the losses of the industry.

Driven by the price increase news, the LED group performed relatively strongly on the 1st. Yiguang and Fucai rose 2.43% and 0.78% respectively, and Yiquan even hit the daily limit price to close.

The domestic LED packaging factory said that the price of some LED chips has indeed risen, mainly due to the poor demand in mainland China, and the continued withdrawal of manufacturers, which has caused the decrease in supply. There is a high probability that if the chip price continues to rise, it will threaten to retreat the already weak demand.

According to TrendForce, LED commercial lighting is the fastest-recovering application in the overall LED lighting market. From the perspective of the supply side, the LED lighting industry has entered a trough since 2018, causing some small and medium-sized players to withdraw, and other traditional lighting supply chain players have also transformed The development of display and other high-margin markets has resulted in reduced supply and low inventory levels.

Therefore, some LED manufacturers have raised prices recently, and the main price increase items are concentrated on lighting LED chips. 3-5%; for special sizes, the increase can reach up to 10%.

In 2022, the global LED terminal demand will decline significantly, and the LED lighting, LED display and other markets will continue to slump, resulting in a reduction in the capacity utilization rate of the upstream LED chip industry, oversupply in the market, and continued price declines. According to TrendForce research, the decline in volume and price will lead to an annual decrease of 23% in the global LED chip market output value in 2022, to only US$2.78 billion. In 2023, with the recovery of the LED industry and the most obvious recovery in the LED lighting market demand, it is expected to further drive the return of the output value of LED chips, which is estimated to reach 2.92 billion US dollars.